Although crowdsale efforts are nothing new under the sun in the world of digital currency, it does not happen all that often to see projects reach their funding goals in less than a day. Digix DAO is on that list for sure, as their crowdsale started earlier today, and was closed in less than twelve hours from starting. Raising a lot of money is not an easy task, but for some companies, raising USS$5.5m is not all that difficult.

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Digix DAO Crowdsale Shatters Records

Some people in the Ethereum and digital currency community thought it was quite a stretch for Digix DAO to raise US$5m through a crowdfunding campaign. However, nothing was further from the truth, as a whopping US$5.5m was raised within the first twelve hours of the campaign going live.

It looks like the decision by the developers to use the Ethereum Mist wallet was a good idea, as this solution lets anyone convert Bitcoin and other digital currencies to Ether within the wallet itself. This made the participation on the Digix DAO crowdsale a lot easier, rather than jumping through several hoops to do so.

This news is excellent for the Ethereum ecosystem, as it goes to show investors are very excited about the concept of decentralized autonomous organizations. Moreover, Digix DAO will be bringing the gold standard to the Ethereum blockchain through their project which undoubtedly attracted the majority of the investment funds.

Even though the Digix team would have been satisfied if US$500,000 had been raised by the end of April, this success was entirely unexpected. It is rather interesting to see this campaign had a hard “cap” regarding maximum money raised, which was set at US$5.5m. Other DAO’s on the Ethereum protocol, such as Slock.it, will not impose this limit.

What makes the concept of a DAO crowdsale more appealing than traditional ICO’s is how funds will sit in an Ethereum smart contract. Spending resources will require majority consensus among DAO holders, ensuring no one individual can run off with the money. Digix will receive payments from this smart contracts at certain intervals, though, as the day-to-day operational costs will need to be covered.

Source: Smith and Crown

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